Head to Head Analysis: Brookfield Renewable (NYSE:BEPC) vs. Advantage Energy (OTCMKTS:AAVVF)

Advantage Energy (OTCMKTS:AAVVF) and Brookfield Renewable (NYSE:BEPC) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Advantage Energy and Brookfield Renewable, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Energy	0	3	3	1	2.71
Brookfield Renewable	2	1	2	0	2.00

Brookfield Renewable has a consensus price target of $38.50, suggesting a potential upside of 0.20%. Given Brookfield Renewable’s higher probable upside, analysts plainly believe Brookfield Renewable is more favorable than Advantage Energy.

Insider & Institutional Ownership

7.9% of Advantage Energy shares are owned by institutional investors. Comparatively, 75.1% of Brookfield Renewable shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Advantage Energy has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Brookfield Renewable has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Valuation and Earnings

This table compares Advantage Energy and Brookfield Renewable”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Energy	$500.25 million	2.81	$37.97 million	$0.22	38.23
Brookfield Renewable	$3.73 billion	1.50	-$2.34 billion	($0.89)	-43.17

Advantage Energy has higher earnings, but lower revenue than Brookfield Renewable. Brookfield Renewable is trading at a lower price-to-earnings ratio than Advantage Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Advantage Energy and Brookfield Renewable’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantage Energy	8.03%	3.30%	1.82%
Brookfield Renewable	-62.07%	-21.54%	-5.01%

Summary

Advantage Energy beats Brookfield Renewable on 10 of the 14 factors compared between the two stocks.

About Advantage Energy

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.

About Brookfield Renewable

Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.